Bitcoin Price Prediction for 2021

Bitcoin Price Prediction for 2021

Bitcoin Price

Predictions are a thankless task. However, different opinions and assessments allow us to look at the situation from the outside and take a more significant movement than was the original calculation.

Estimates of the fastest Bitcoin exchange future include both sharply optimistic and pessimistic forecasts. Let’s try to structure them and determine the probability of the events.

The rise of Bitcoin is only a symptom of a common problem. Social inequality in the 21st century has worsened even more, and the value of U.S. financial assets is six times the size of GDP. When the tipping point is reached, there will be a burst, and the Bitcoin bubble will burst.

That sounds ominous, but that was the cryptocurrency prediction in 2017. At the time, it was compared to the tulip fever in Holland in the 17th century. However, Bitcoin’s prediction did not come true: three years later, it had already renewed its all-time highest price (ATH).

Major falls for Bitcoin are not uncommon: in 2011, the price fell from $32 to $2, and in 2014 from $1,000 to $170. Nevertheless, patient investors made super-profits as the price inevitably rose above the previous ATH point.

Bitcoin price predictions vary widely. Bitcoin has already reached $61,000, and now a correction to the $20,000 level is expected. However, if we draw historical parallels, the fall could also happen to $4,000.

But such decline is almost impossible. It’s also important to note, that Bitcoin (BTC) price movements influence the whole crypto market and might change the price of major cryptocurrencies (like Ethereum (ETH), Litecoin (LTC), etc.) drastically. 

As Bitcoin’s value grows, so does the number of participants, which makes the system more stable and the price less volatile. The year 2020 saw the arrival of institutional players.

They are distinguished by their long-term planning against the actions of small speculators, who close purchases at the first danger. Thus, the number of wallets with $1,000 BTC or more continues to grow, thanks to the fastest Bitcoin exchange, despite the drop in value from $61,000 to the current $50,000.

Institutional investors, we have found, are fleeing real inflation, which has yet to manifest itself fully. That said, Biden approves a new $1.9 trillion anti-COVID plan. The Fed will have to issue cash again in exchange for government bonds.

While Bitcoin is seen by most institutional investors as a safe haven from inflation, the new U.S. stimulus measures will reignite interest in cryptocurrencies.

The current price decline has not stopped money flow into cryptocurrencies, and a 30% correction should be treated as commonplace if we are talking about highly volatile Bitcoin.

Much, if not all, will depend on the attitude of leading regulators toward digital assets. At the moment, they are taking a rather neutral stance. This opens up the possibility of long-term planning. There is speculation that Bitcoin will gradually displace gold from investments – driving the price up to $146,000.

Leave a Reply